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Article: Caution breeds long leads. (Leadtimes).
- Article from:
- Purchasing
- Article date:
- April 3, 2003
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PURCHASING'S Leadtime Index (1992=100) leapt 14 points between February and March, bringing its total increase from last low point (in April 2002) to 52 points (see chart on p.1). For the 12 months ending in March, this indicator--which tracks average delivery speeds for more than 150 common industrial materials--rose 22%. What's more, buyers report lengthening leadtimes in nearly every major commodity category (with the notable exception of electronic components).
Physical production capacity for most primary and intermediate materials is far from tight, so the preponderance of this dramatic leadtime-lengthening trend appears to stem from extreme caution among ...